What Is Telstra's Acquisition?

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An acquisition can be defined as the consolidation of companies or assets. This is basically when one company is purchased by another and as a result, no new company is formed. There are several different drivers of a successful acquisition; these comprise of due diligence, strategic drivers, and aligning cultures. Due diligence basically means evaluating company decisions prior to finalization. This focuses on numerous areas including financial, legal, and regulatory, accounting and tax. In summary, due diligence is fixated on making numbers work. When this stage is cleared after thorough observation then partners move onto the next stage. In Telstra a great aspect of time was spent on this stage, everything was double checked before moving onto the subsequent step. It is evident that Telstra has been successful in making numbers work. Strategic Drivers Effective Organizational Growth: This is …show more content…

To increase these aspects it requires grasping already established customer loyalty and developing on it. After the introduction of Pacnet, revenue intensified by 39.4% to $1238 Million. Revenue from China digital media portfolio increased by 81.3% to $504 Million. Therefore, this increase reflects a successful acquisition. Telstra's Share price has had a steady increase over the past couple of years. During this duration Pacnet was introduced, therefore, Pacnet has been a driver in the increase. The share price in FY12 was $3.11, on 30th June 2015 the closing share price was $6.14 that’s a rise of 97.4%. The earning per share has also risen immensely, the share price after the acquisition has steadily increased. As revenue escalates and the company expands it attracts more investors, which therefore increases the share price. This is the case of Telstra with the introduction of Pacnet. Evidently this portrays that this acquisition is a successful

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